Transport utilities want full subsidy for student passes

Struggling to pay their staff revised salaries, the four state-run transport utilities want the government to fully reimburse the subsidy incurred on concessional bus passes for students, physically challenged people and others.

The three-day strike by their staff last week forced state-run transport utilities — KSRTC, BMTC, NWKRTC and NEKRTC — to promise a 12.5% increase in their wages. The corporations need to mobilise additional revenue of Rs 1,775 crore over four years to pay the staff the revised wages. That works out at Rs 443 crore per year and Rs 37 crore per month.

The four utilities employ 1.23 lakh people and have 23,000 vehicles. Among the four corporations, the KSRTC and the BMTC have to take the major load. They need to mobilise additional revenue of Rs 14 crore and Rs 10 crore per month, respectively. Presently, the KSRTC spends almost half of its total revenue on staff salaries, 30% on fuel for vehicles and a portion of the remaining amount on maintenance such as purchase of spare parts to keep the buses in good condition. The situation is not different in the other three corporations.

In short, the corporations cannot afford to pay the revised salaries on time. They have three options — increase fares, cut down unnecessary expenses and increase revenue by introducing additional bus services. Rajender Kumar Kataria, Managing Director of KSRTC, ruled out increasing the fares, saying that will burden the passengers. The KSRTC is left with the two other options, he told Deccan Herald.

The four corporations also want the government to fully reimburse the subsidy incurred on concessional passes for students, physically challenged people and others, said a top official in the Transport Department.

Explaining the financial condition of the corporations, another official said it was decided to seek reimbursement of subsidy from the government. The government reimburses only a part of the subsidy and had earlier ruled out full financial assistance.
DH News Service